Fourth Quarter 2024

Key Financial Results:

Net Income was $271 million, translating to diluted earnings per share ("EPS") of $3.59, up 26% from a year ago
Adjusted EPS* increased 21% year-over-year to $4.25
- Gross profit* increased 22% year-over-year to $1,228 million
- Core G&A* increased 16% year-over-year to $422 million
- Adjusted EBITDA* increased 22% year-over-year to $585 million

Key Business Results:

Total advisory and brokerage assets increased 29% year-over-year to $1.7 trillion
- Advisory assets increased 30% year-over-year to $957 billion
- Advisory assets as a percentage of total assets increased to 55.0%, up from 54.3% a year ago
Total organic net new assets were $68 billion, representing 17% annualized growth
- This included $40 billion of assets from Prudential Advisors ("Prudential"), and $2 billion of assets that off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Prior to these impacts, organic net new assets were $30 billion, translating to an 8% annualized growth rate
Recruited assets⁽¹⁾ were a record of $79 billion
- This included $63 billion of assets from Prudential
Advisor count⁽²⁾ was 28,888, up 5,202 sequentially and 6,228 year-over-year
- This included approximately 2,200 advisors from Atria Wealth Solutions, Inc. ("Atria"), and approximately 2,800 advisors from Prudential
Total client cash balances were $55 billion, an increase of $9 billion sequentially and $7 billion year-over-year
- Client cash balances as a percentage of total assets were 3.2%, up from 2.9% in the prior quarter and down from 3.6% a year ago

Key Capital and Liquidity Results:

Corporate cash⁽³⁾ was $479 million
Leverage ratio⁽⁴⁾ was 1.89x
Share repurchases were $100 million and dividends paid were $23 million

Full Year 2024

Key Financial Results:

Net Income was $1.1 billion, translating to diluted EPS of $14.03, up 2% from a year ago
Adjusted EPS* increased 5% year-over-year to $16.51
- Gross profit* increased 12% year-over-year to $4.50 billion
- Core G&A* increased 11% year-over-year to $1.52 billion
- Adjusted EBITDA* increased 7% year-over-year to $2.22 billion

Key Business & Capital and Liquidity Results:

Total organic net new assets were $141 billion, representing a 10% growth rate, up from 9% in 2023
Recruited assets for the year were a record of $149 billion, up approximately 86% from a year ago
Share repurchases were $170 million and dividends paid were $90 million

Key Updates

Large Institutions:

Prudential: Onboarded the retail wealth management business of Prudential, with $63 billion of total assets, of which $40 billion transitioned onto our platform in Q4
Wintrust Financial Corporation: In January 2025, onboarded the wealth management business of Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, "Wintrust"), with $16 billion of brokerage and advisory assets, of which $15 billion transitioned onto our platform to-date

M&A:

Atria: Closed the acquisition of Atria, and expect to complete the conversion in mid-2025
The Investment Center, Inc. ("The Investment Center"): On track to close and convert the acquisition of The Investment Center in the first half of 2025
Liquidity & Succession: Deployed approximately $81 million of capital to close 8 deals in Q4, including two external practices

Corporate Debt:

Completed leverage-neutral refinancing of existing $1.0 billion Senior Secured Term Loan B with a new $1.0 billion Senior Unsecured Term Loan A

Core G&A:

2024 Core G&A* was $1,515 million, within our outlook range of $1,510 million to $1,525 million
- Prior to the impact of Prudential and Atria, 2024 Core G&A* increased by approximately 8%
In 2025, we plan to slow the growth of Core G&A*, as our ongoing investments to scale our business are driving greater efficiencies
- Our 2025 Core G&A* outlook range prior to Prudential and Atria is 6% to 8% year-over-year growth, or $1,560 million to $1,600 million
- Including expenses related to Prudential and Atria, our 2025 Core G&A* outlook range is $1,730 million to $1,780 million

SAN DIEGO, Jan. 30, 2025 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (NASDAQ:LPLA) (the "Company") today announced results for its fourth quarter ended December 31, 2024, reporting net income of $271 million, or $3.59 per share. This compares with $218 million, or $2.85 per share, in the fourth quarter of 2023 and $255 million, or $3.39 per share, in the prior quarter.

"2024 marked another milestone year for LPL," said Rich Steinmeier, CEO. "We delivered double-digit organic asset growth, including the onboarding of one of our largest institutional partners, closed on our acquisition of Atria, continued to advance our pioneering Liquidity & Succession program, and reported record adjusted earnings per share. Looking ahead to 2025, our business momentum and financial strength position us well to continue expanding our leadership across the advisor-mediated marketplace and delivering long-term shareholder value."

"In Q4, we delivered solid business and financial results," said Matt Audette, President and CFO. "As we look ahead, we remain excited about the opportunities we have to continue to drive growth, deliver operating leverage, and create long-term shareholder value."

Dividend Declaration

The Company's Board of Directors declared a $0.30 per share dividend to be paid on March 25, 2025 to all stockholders of record as of March 11, 2025.

Conference Call and Additional Information

The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, January 30, 2025. The conference call will be accessible and available for replay at investor.lpl.com/events.

Contacts

Investor Relations

investor.relations@lplfinancial.com

Media Relations

media.relations@lplfinancial.com

About LPL Financial

LPL Financial Holdings Inc. (NASDAQ:LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace⁽⁵⁾, LPL supports nearly 29,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.7 trillion in brokerage and advisory assets on behalf of approximately 6 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

Securities and Advisory services offered through LPL Financial LLC ("LPL Financial") or its affiliate LPL Enterprise, LLC ("LPL Enterprise"), both registered investment advisers and broker-dealers. Members FINRA/SIPC. LPL Financial serves as the clearing and carrying firm for accounts LPL Enterprise introduces to it.

LPL Financial and LPL Enterprise provide financial services only from the United States.

Throughout this communication, the terms "financial advisors" and "advisors" are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.

We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.

Forward-Looking Statements

This press release contains statements regarding:

the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Atria, Prudential, The Investment Center and Wintrust;
the Company's future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company's ICA yield, service and fee revenue, transaction revenue, core G&A expense, promotional expense, share-based compensation expense, depreciation and amortization and share repurchases; and
future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value.

These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company's expectations and objectives as of January 30, 2025 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include:

the failure to satisfy the closing conditions applicable to the Company's purchase agreement with The Investment Center, including regulatory approvals;
difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required;
disruptions in the businesses of the Company that could make it more difficult to maintain relationships with advisors and their clients;
the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company;
changes in general economic and financial market conditions, including retail investor sentiment;
changes in interest rates and fees payable by banks participating in the Company's client cash programs, including the Company's success in negotiating agreements with current or additional counterparties;
the Company's strategy and success in managing client cash program fees;
fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue;
effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to provide financial products and services effectively;
whether retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;
changes in the growth and profitability of the Company's fee-based offerings and asset-based revenues;
the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations;
the cost of defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance;
changes made to the Company's services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company's gross profit streams and costs;
the execution of the Company's capital management plans, including its compliance with the terms of the Company's amended and restated credit agreement, the committed revolving credit facilities of the Company and LPL Financial, and the indentures governing the Company's senior unsecured notes;
strategic acquisitions and investments, including pursuant to the Company's Liquidity & Succession solution, and the effect that such acquisitions and investments may have on the Company's capital management plans and liquidity;
the price, availability and trading volumes of shares of the Company's common stock, which will affect the timing and size of future share repurchases by the Company, if any;
the execution of the Company's plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives;
whether advisors affiliated with Atria, Prudential, The Investment Center, and Wintrust will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company;
the performance of third-party service providers to which business processes have been transitioned;
the Company's ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and
the other factors set forth in the Company's most recent Annual Report on Form 10-K, as may be amended or updated in the Company's Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission.

Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company's view as of any date subsequent to the date of this press release.


LPL Financial Holdings Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

	Three Months Ended						Three Months Ended
	December 31,		September 30,				December 31,
		2024		2024	Change			2023	Change
REVENUE
Advisory	$	1,595,834	$	1,378,050	16	%	$	1,085,497	47	%
Commission:
Sales-based		525,795		429,132	23	%		355,958	48	%
Trailing		439,668		377,400	16	%		326,454	35	%
Total commission		965,463		806,532	20	%		682,412	41	%
Asset-based:
Client cash		378,816		353,855	7	%		352,661	7	%
Other asset-based		290,962		272,336	7	%		228,473	27	%
Total asset-based		669,778		626,191	7	%		581,134	15	%
Service and fee		139,119		145,729	(5	%)		130,680	6	%
Transaction		61,535		58,546	5	%		53,858	14	%
Interest income, net		46,680		49,923	(6	%)		43,312	8	%
Other		33,942		43,423	(22	%)		66,936	(49	%)
Total revenue		3,512,351		3,108,394	13	%		2,643,829	33	%
EXPENSE
Advisory and commission		2,250,427		1,948,065	16	%		1,607,978	40	%
Compensation and benefits		321,933		266,415	21	%		270,709	19	%
Promotional		162,057		164,538	(2	%)		126,800	28	%
Depreciation and amortization		92,032		78,338	17	%		67,936	35	%
Interest expense on borrowings		81,979		67,779	21	%		54,415	51	%
Occupancy and equipment		75,538		69,879	8	%		62,103	22	%
Amortization of other intangibles		42,614		32,461	31	%		28,618	49	%
Brokerage, clearing and exchange		34,789		29,636	17	%		25,917	34	%
Professional services		32,055		26,295	22	%		21,572	49	%
Communications and data processing		18,772		17,916	5	%		17,814	5	%
Other		58,874		59,724	(1	%)		66,180	(11	%)
Total expense		3,171,070		2,761,046	15	%		2,350,042	35	%
INCOME BEFORE PROVISION FOR INCOME TAXES		341,281		347,348	(2	%)		293,787	16	%
PROVISION FOR INCOME TAXES		70,532		92,045	(23	%)		76,232	(7	%)
NET INCOME	$	270,749	$	255,303	6	%	$	217,555	24	%
EARNINGS PER SHARE
Earnings per share, basic	$	3.62	$	3.41	6	%	$	2.89	25	%
Earnings per share, diluted	$	3.59	$	3.39	6	%	$	2.85	26	%
Weighted-average shares outstanding, basic		74,785		74,776	—	%		75,228	(1	%)
Weighted-average shares outstanding, diluted		75,337		75,405	—	%		76,240	(1	%)

LPL Financial Holdings Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

	Years Ended
	December 31,
		2024		2023	Change
REVENUE
Advisory	$	5,461,858	$	4,135,681	32	%
Commission:
Sales-based		1,763,232		1,252,783	41	%
Trailing		1,542,255		1,299,840	19	%
Total commission		3,305,487		2,552,623	29	%
Asset-based:
Client cash		1,426,528		1,509,869	(6	%)
Other asset-based		1,071,170		867,860	23	%
Total asset-based		2,497,698		2,377,729	5	%
Service and fee		552,020		508,437	9	%
Transaction		236,274		199,939	18	%
Interest income, net		187,606		159,415	18	%
Other		144,164		119,024	21	%
Total revenue		12,385,107		10,052,848	23	%
EXPENSE
Advisory and commission		7,751,006		5,915,807	31	%
Compensation and benefits		1,136,717		979,681	16	%
Promotional		589,339		459,233	28	%
Depreciation and amortization		308,527		246,994	25	%
Occupancy and equipment		281,210		248,620	13	%
Interest expense on borrowings		274,181		186,804	47	%
Amortization of other intangibles		135,234		107,211	26	%
Brokerage, clearing and exchange		127,941		105,984	21	%
Professional services		93,729		72,583	29	%
Communications and data processing		75,838		75,717	—	%
Other		218,493		209,439	4	%
Total expense		10,992,215		8,608,073	28	%
INCOME BEFORE PROVISION FOR INCOME TAXES		1,392,892		1,444,775	(4	%)
PROVISION FOR INCOME TAXES		334,276		378,525	(12	%)
NET INCOME	$	1,058,616	$	1,066,250	(1	%)
EARNINGS PER SHARE
Earnings per share, basic	$	14.17	$	13.88	2	%
Earnings per share, diluted	$	14.03	$	13.69	2	%
Weighted-average shares outstanding, basic		74,713		76,807	(3	%)
Weighted-average shares outstanding, diluted		75,427		77,861	(3	%)

LPL Financial Holdings Inc.
Consolidated Statements of Financial Condition
(In thousands, except share data)
(Unaudited)

	December 31, 2024			September 30, 2024			December 31, 2023
ASSETS
Cash and equivalents	$	967,079		$	1,474,954		$	465,671
Cash and equivalents segregated under federal or other regulations		1,597,249			1,382,867			2,007,312
Restricted cash		119,724			104,881			108,180
Receivables from clients, net		633,834			622,015			588,585
Receivables from brokers, dealers and clearing organizations		76,545			53,763			50,069
Advisor loans, net		2,281,088			1,913,363			1,479,690
Other receivables, net		902,777			802,186			743,317
Investment securities ($42,267, $94,694 and $76,088 at fair value at December 31, 2024, September 30, 2024 and December 31, 2023, respectively)		57,481			111,096			91,311
Property and equipment, net		1,210,027			1,144,676			933,091
Goodwill		2,172,873			1,868,193			1,856,648
Other intangibles, net		1,482,988			782,426			671,585
Other assets		1,815,739			1,681,455			1,390,021
Total assets	$	13,317,404		$	11,941,875		$	10,385,480
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Client payables	$	1,898,665		$	2,039,140		$	2,266,176
Payables to brokers, dealers and clearing organizations		129,228			211,054			163,337
Accrued advisory and commission expenses payable		323,996			252,881			216,541
Corporate debt and other borrowings, net		5,494,724			4,441,913			3,734,111
Accounts payable and accrued liabilities		588,450			485,927			485,963
Other liabilities		1,951,739			1,739,209			1,440,373
Total liabilities		10,386,802			9,170,124			8,306,501
STOCKHOLDERS' EQUITY:
Common stock, $0.001 par value; 600,000,000 shares authorized; 130,914,541, 130,779,259 shares and 130,233,328 shares issued at December 31, 2024, September 30, 2024 and December 31, 2023, respectively		131			131			130
Additional paid-in capital		2,066,268			2,059,207			1,987,684
Treasury stock, at cost — 56,253,909, 55,968,552 shares and 55,576,970 shares at December 31, 2024, September 30, 2024 and December 31, 2023, respectively		(4,202,322	)		(4,102,319	)		(3,993,949	)
Retained earnings		5,066,525			4,814,732			4,085,114
Total stockholders' equity		2,930,602			2,771,751			2,078,979
Total liabilities and stockholders' equity	$	13,317,404		$	11,941,875		$	10,385,480

LPL Financial Holdings Inc.
Management's Statements of Operations
(In thousands, except per share data)
(Unaudited)

Certain information in this release is presented as reviewed by the Company's management and includes information derived from the Company's consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled"Non-GAAP Financial Measures"in this release.

	Quarterly Results
	Q4 2024			Q3 2024			Change		Q4 2023			Change
Gross Profit₍₆₎
Advisory	$	1,595,834		$	1,378,050		16	%	$	1,085,497		47	%
Trailing commissions		439,668			377,400		16	%		326,454		35	%
Sales-based commissions		525,795			429,132		23	%		355,958		48	%
Advisory fees and commissions		2,561,297			2,184,582		17	%		1,767,909		45	%
Production-based payout₍₇₎		(2,248,674	)		(1,910,634	)	18	%		(1,548,540	)	45	%
Advisory fees and commissions, net of payout		312,623			273,948		14	%		219,369		43	%
Client cash₍₈₎		397,001			372,333		7	%		373,979		6	%
Other asset-based₍₉₎		290,962			272,336		7	%		228,473		27	%
Service and fee		139,119			145,729		(5	%)		130,680		6	%
Transaction		61,535			58,546		5	%		53,858		14	%
Interest income, net₍₁₀₎		28,481			31,428		(9	%)		21,975		30	%
Other revenue₍₁₁₎		32,705			3,392		n/m			4,636		n/m
Total net advisory fees and commissions and attachment revenue		1,262,426			1,157,712		9	%		1,032,970		22	%
Brokerage, clearing and exchange expense		(34,789	)		(29,636	)	17	%		(25,917	)	34	%
Gross Profit₍₆₎		1,227,637			1,128,076		9	%		1,007,053		22	%

G&A Expense
Core G&A₍₁₂₎		421,894			359,134		17	%		364,469		16	%
Regulatory charges₍₁₃₎		7,335			24,879		(71	%)		8,905		(18	%)
Promotional (ongoing)₍₁₄₎₍₁₅₎		173,191			175,605		(1	%)		138,457		25	%
Acquisition costs₍₁₅₎		37,261			22,243		68	%		34,931		7	%
Employee share-based compensation		26,067			20,289		28	%		15,535		68	%
Total G&A		665,748			602,150		11	%		562,297		18	%
Loss on extinguishment of debt		3,983			—		100	%		—		100	%
EBITDA₍₁₆₎		557,906			525,926		6	%		444,756		25	%
Depreciation and amortization		92,032			78,338		17	%		67,936		35	%
Amortization of other intangibles		42,614			32,461		31	%		28,618		49	%
Interest expense on borrowings		81,979			67,779		21	%		54,415		51	%
INCOME BEFORE PROVISION FOR INCOME TAXES		341,281			347,348		(2	%)		293,787		16	%
PROVISION FOR INCOME TAXES		70,532			92,045		(23	%)		76,232		(7	%)
NET INCOME	$	270,749		$	255,303		6	%	$	217,555		24	%
Earnings per share, diluted	$	3.59		$	3.39		6	%	$	2.85		26	%
Weighted-average shares outstanding, diluted		75,337			75,405		—	%		76,240		(1	%)
Adjusted EBITDA₍₁₆₎	$	584,783		$	566,169		3	%	$	479,687		22	%
Adjusted EPS₍₁₇₎	$	4.25		$	4.16		2	%	$	3.51		21	%

LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Market Drivers
S&P 500 Index (end of period)		5,882			5,762		2%		4,770		23%
Russell 2000 Index (end of period)		2,230			2,230		—%		2,027		10%
Fed Funds daily effective rate (average bps)		466			527		(61bps)		533		(67bps)

Advisory and Brokerage Assets₍₁₈₎
Advisory assets	$	957.0		$	892.0		7%	$	735.8		30%
Brokerage assets		783.7			700.1		12%		618.2		27%
Total Advisory and Brokerage Assets	$	1,740.7		$	1,592.1		9%	$	1,354.1		29%
Advisory as a % of Total Advisory and Brokerage Assets		55.0	%		56.0	%	(100bps)		54.3	%	70bps

Assets by Platform
Corporate advisory assets₍₁₉₎	$	678.3		$	618.8		10%	$	496.5		37%
Independent RIA advisory assets₍₁₉₎		278.7			273.2		2%		239.3		16%
Brokerage assets		783.7			700.1		12%		618.2		27%
Total Advisory and Brokerage Assets	$	1,740.7		$	1,592.1		9%	$	1,354.1		29%

Centrally Managed Assets
Centrally managed assets₍₂₀₎	$	160.0		$	138.1		16%	$	112.1		43%
Centrally Managed as a % of Total Advisory Assets		16.7	%		15.5	%	120bps		15.2	%	150bps

LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Organic Net New Assets (NNA)₍₂₁₎
Organic net new advisory assets	$	49.3		$	23.2		n/m	$	20.5		n/m
Organic net new brokerage assets		18.8			3.8		n/m		4.2		n/m
Total Organic Net New Assets	$	68.0		$	27.0		n/m	$	24.7		n/m

Acquired Net New Assets₍₂₁₎
Acquired net new advisory assets	$	21.8		$	0.5		n/m	$	—		n/m
Acquired net new brokerage assets		67.5			0.1		n/m		—		n/m
Total Acquired Net New Assets	$	89.3		$	0.6		n/m	$	—		n/m

Total Net New Assets₍₂₁₎
Net new advisory assets	$	71.1		$	23.7		n/m	$	20.5		n/m
Net new brokerage assets		86.2			3.8		n/m		4.2		n/m
Total Net New Assets	$	157.3		$	27.5		n/m	$	24.7		n/m

Net brokerage to advisory conversions₍₂₂₎	$	4.8		$	3.5		n/m	$	2.6		n/m
Organic advisory NNA annualized growth₍₂₃₎		22.1	%		11.2	%	n/m		12.4	%	n/m
Total organic NNA annualized growth₍₂₃₎		17.1	%		7.2	%	n/m		8.0	%	n/m

Net New Advisory Assets₍₂₁₎
Corporate RIA net new advisory assets	$	64.5		$	24.0		n/m	$	15.9		n/m
Independent RIA net new advisory assets		6.6			(0.3	)	n/m		4.6		n/m
Total Net New Advisory Assets	$	71.1		$	23.7		n/m	$	20.5		n/m
Centrally managed net new advisory assets₍₂₁₎	$	24.9		$	4.4		n/m	$	3.0		n/m

Net buy (sell) activity₍₂₄₎	$	38.3		$	37.7		n/m	$	32.8		n/m

^{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc.
Client Cash Data
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Client Cash Balances (in billions)₍₂₅₎
Insured cash account sweep	$	38.3		$	32.1		19%	$	34.5		11%
Deposit cash account sweep		10.7			9.6		11%		9.3		15%
Total Bank Sweep		49.0			41.7		18%		43.8		12%
Money market sweep		4.3			2.3		87%		2.4		79%
Total Client Cash Sweep Held by Third Parties		53.3			44.0		21%		46.2		15%
Client cash account (CCA)₍₂₆₎		1.8			1.8		—%		2.0		(10%)
Total Client Cash Balances	$	55.1		$	45.8		20%	$	48.2		14%
Client Cash Balances as a % of Total Assets		3.2	%		2.9	%	30bps		3.6	%	(40bps)

^{Note: Totals may not foot due to rounding.}

	Three Months Ended
	December 31, 2024					September 30, 2024					December 31, 2023
Interest-Earnings Assets	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₇₎	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₇₎	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₇₎
Insured cash account sweep	$	34.8	$	292,661	335	$	31.1	$	259,503	332	$	33.3	$	266,058	317
Deposit cash account sweep		9.8		83,879	340		9.2		92,765	400		8.9		84,901	379
Total Bank Sweep		44.6		376,540	336		40.3		352,268	348		42.2		350,959	330
Money market sweep		3.3		2,277	28		2.3		1,587	28		2.4		1,702	28
Total Client Cash Held By Third Parties		47.9		378,817	315		42.6		353,855	330		44.6		352,661	314
Client cash account (CCA)₍₂₆₎		1.8		18,184	407		1.6		18,478	472		1.8		21,318	475
Total Client Cash		49.7		397,001	318		44.2		372,333	335		46.4		373,979	320
Margin receivables		0.6		11,506	829		0.5		11,199	885		0.5		10,874	878
Other interest revenue		1.3		16,975	524		1.5		20,229	533		0.9		11,101	507
Total Client Cash and Interest Income, Net	$	51.6	$	425,482	329	$	46.2	$	403,761	348	$	47.7	$	395,954	329

^{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc.
Monthly Metrics
(Dollars in billions, except where noted)
(Unaudited)

	December 2024		November 2024		Change	October 2024			September 2024
Advisory and Brokerage Assets₍₁₈₎
Advisory assets	$	957.0	$	973.8	(2%)	$	910.6		$	892.0
Brokerage assets		783.7		785.6	—%		762.7			700.1
Total Advisory and Brokerage Assets	$	1,740.7	$	1,759.3	(1%)	$	1,673.3		$	1,592.1

Organic Net New Assets (NNA)₍₂₁₎
Organic net new advisory assets	$	12.5	$	27.9	n/m	$	8.8		$	11.0
Organic net new brokerage assets		12.9		6.3	n/m		(0.5	)		0.5
Total Organic Net New Assets	$	25.5	$	34.2	n/m	$	8.3		$	11.4

Acquired Net New Assets₍₂₁₎
Acquired net new advisory assets	$	—	$	0.5	n/m	$	21.3		$	0.2
Acquired net new brokerage assets		0.2		0.3	n/m		67.0		$	0.1
Total Acquired Net New Assets	$	0.3	$	0.8	n/m	$	88.3		$	0.3

Total Net New Assets₍₂₁₎
Net new advisory assets	$	12.6	$	28.4	n/m	$	30.1		$	11.2
Net new brokerage assets		13.2		6.6	n/m		66.5			0.5
Total Net New Assets	$	25.8	$	35.0	n/m	$	96.6		$	11.7
Net brokerage to advisory conversions₍₂₂₎	$	2.0	$	1.7	n/m	$	1.1		$	1.2

Client Cash Balances₍₂₅₎
Insured cash account sweep	$	38.3	$	34.8	10%	$	34.7		$	32.1
Deposit cash account sweep		10.7		9.9	8%		9.7			9.6
Total Bank Sweep		49.0		44.7	10%		44.4			41.7
Money market sweep		4.3		4.3	—%		2.6			2.3
Total Client Cash Sweep Held by Third Parties		53.3		49.0	9%		47.0			44.0
Client cash account (CCA)₍₂₆₎		1.8		1.5	20%		1.3			1.8
Total Client Cash Balances		55.1		50.5	9%		48.3			45.8

Net buy (sell) activity₍₂₄₎	$	13.5	$	12.4	n/m	$	12.5		$	12.2

Market Drivers
S&P 500 Index (end of period)		5,882		6,032	(2%)		5,705			5,762
Russell 2000 Index (end of period)		2,230		2,435	(8%)		2,197			2,230
Fed Funds effective rate (average bps)		448		465	(17bps)		483			513

^{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc.
Financial Measures
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Commission Revenue by Product
Annuities	$	561,918		$	481,852		17%	$	408,480		38%
Mutual funds		232,529			193,451		20%		167,392		39%
Fixed income		59,332			55,707		7%		40,441		47%
Equities		45,829			36,786		25%		29,920		53%
Other		65,855			38,736		70%		36,179		82%
Total commission revenue	$	965,463		$	806,532		20%	$	682,412		41%

Commission Revenue by Sales-based and Trailing
Sales-based commissions
Annuities	$	314,591		$	265,955		18%	$	221,070		42%
Mutual funds		52,908			42,310		25%		37,016		43%
Fixed income		59,332			55,707		7%		40,441		47%
Equities		45,829			36,786		25%		29,920		53%
Other		53,135			28,374		87%		27,511		93%
Total sales-based commissions	$	525,795		$	429,132		23%	$	355,958		48%
Trailing commissions
Annuities	$	247,327		$	215,897		15%	$	187,410		32%
Mutual funds		179,621			151,141		19%		130,376		38%
Other		12,720			10,362		23%		8,668		47%
Total trailing commissions	$	439,668		$	377,400		16%	$	326,454		35%
Total commission revenue	$	965,463		$	806,532		20%	$	682,412		41%

Payout Rate₍₇₎		87.79	%		87.46	%	33bps		87.59	%	20bps

LPL Financial Holdings Inc.
Capital Management Measures
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Q4 2023
Cash and equivalents	$	967,079		$	1,474,954		$	465,671
Cash at regulated subsidiaries		(884,779	)		(992,450	)		(410,313	)
Excess cash at regulated subsidiaries per the Credit Agreement		397,138			225,886			128,327
Corporate Cash₍₃₎	$	479,438		$	708,390		$	183,685

Corporate Cash₍₃₎
Cash at the Parent	$	39,782		$	435,109		$	26,587
Excess cash at regulated subsidiaries per the Credit Agreement		397,138			225,886			128,327
Cash at non-regulated subsidiaries		42,518			47,395			28,771
Corporate Cash	$	479,438		$	708,390		$	183,685

Leverage Ratio
Total debt	$	5,517,000		$	4,469,175		$	3,757,200
Total corporate cash		479,438			708,390			183,685
Credit Agreement Net Debt	$	5,037,562		$	3,760,785		$	3,573,515
Credit Agreement EBITDA (trailing twelve months)₍₂₈₎	$	2,665,033		$	2,340,886		$	2,194,807
Leverage Ratio	1.89x			1.61x			1.63x

	December 31, 2024
Total Debt	Balance		Current Applicable Margin	Interest Rate		Maturity
Revolving Credit Facility_(a)	$	1,047,000	ABR+37.5 bps / SOFR+147.5 bps	6.007	%	5/20/2029
Broker-Dealer Revolving Credit Facility		—	SOFR+135 bps	5.840	%	5/19/2025
Senior Unsecured Term Loan A		1,020,000	SOFR+147.5 bps_(b)	6.000	%	12/5/2026
Senior Unsecured Notes		500,000	5.700% Fixed	5.700	%	5/20/2027
Senior Unsecured Notes		400,000	4.625% Fixed	4.625	%	11/15/2027
Senior Unsecured Notes		750,000	6.750% Fixed	6.750	%	11/17/2028
Senior Unsecured Notes		900,000	4.000% Fixed	4.000	%	3/15/2029
Senior Unsecured Notes		400,000	4.375% Fixed	4.375	%	5/15/2031
Senior Unsecured Notes		500,000	6.000% Fixed	6.000	%	5/20/2034
Total / Weighted Average	$	5,517,000		5.532	%

^{(a) Secured borrowing capacity of $2.25 billion at LPL Holdings, Inc. (the "Parent").}
^{(b) The SOFR rate option is a one-month SOFR rate and subject to an interest rate floor of 0 bps.}

LPL Financial Holdings Inc.
Key Business and Financial Metrics
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Advisors
Advisors		28,888			23,686		22%		22,660		27%
Net new advisors		5,202			224		n/m		256		n/m
Annualized advisory fees and commissions per advisor₍₂₉₎	$	390		$	371		5%	$	314		24%
Average total assets per advisor ($ in millions)₍₃₀₎	$	60.3		$	67.2		(10%)	$	59.8		1%
Transition assistance loan amortization ($ in millions)₍₃₁₎	$	76.3		$	69.1		10%	$	55.1		38%
Total client accounts (in millions)		10.0			8.7		15%		8.3		20%

Employees		7,780			7,342		6%		7,372		6%

Services Group
Services Group subscriptions₍₃₂₎
Professional Services		1,925			1,890		2%		1,895		2%
Business Optimizers		3,980			3,798		5%		3,363		18%
Planning and Advice		799			735		9%		548		46%
Total Services Group subscriptions		6,704			6,423		4%		5,806		15%
Services Group advisor count		4,521			4,340		4%		3,850		17%

AUM retention rate (quarterly annualized)₍₃₃₎		97.3	%		97.0	%	30bps		98.4	%	(110bps)

Capital Management
Capital expenditures ($ in millions)₍₃₄₎	$	165.5		$	147.1		13%	$	105.9		56%
Acquisitions, net ($ in millions)₍₃₅₎	$	847.9		$	34.1		n/m	$	92.9		n/m

Share repurchases ($ in millions)	$	100.0		$	—		100%	$	225.0		(56%)
Dividends ($ in millions)		22.5			22.4		—%		22.6		—%
Total Capital Returned ($ in millions)	$	122.5		$	22.4		n/m	$	247.6		(51%)

Non-GAAP Financial Measures

Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company's current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company.

Adjusted EPS and Adjusted net income

Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income plus the after-tax impact of amortization of other intangibles, acquisition costs, certain regulatory charges, losses on extinguishment of debt, and amounts related to the departure of the Company's former Chief Executive Officer, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company's core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company's ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS, please see the endnote disclosures in this release.

Gross profit

Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company's gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company's core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the endnote disclosures in this release.

Core G&A

Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; losses on extinguishment of debt; promotional (ongoing); employee share-based compensation; regulatory charges; and acquisition costs. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company's total expense as calculated in accordance with GAAP. For a reconciliation of the Company's total expense to core G&A, please see the endnote disclosures in this release. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly, a reconciliation of the Company's outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort.

EBITDA and Adjusted EBITDA

EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non-GAAP measure, plus acquisition costs, certain regulatory charges, amounts related to the departure of the Company's former Chief Executive Officer, and losses on extinguishment of debt. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company's earnings from operations. EBITDA and adjusted EBITDA are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to EBITDA and adjusted EBITDA, please see the endnote disclosures in this release.

Credit Agreement EBITDA

Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company's amended and restated credit agreement ("Credit Agreement") as "Consolidated EBITDA," which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company's debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the endnote disclosures in this release.

Endnote Disclosures

(1) Represents the estimated total advisory and brokerage assets expected to transition to the Company's primary broker-dealer subsidiary, LPL Financial, in connection with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate.

(2) The terms "Financial Advisors" and "Advisors" refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial, an SEC-registered broker-dealer and investment advisor, or one of Atria's seven introducing broker-dealer subsidiaries.

(3) Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company's Credit Agreement, which include LPL Financial, LPL Enterprise, LLC, The Private Trust Company, N.A. and certain of Atria's introducing broker-dealer subsidiaries, in excess of the capital requirements of the Company's Credit Agreement and (3) cash and equivalents held at non-regulated subsidiaries.

(4) Compliance with the Leverage Ratio is only required under the Company's revolving credit facility.

(5) The Company was named a Top RIA custodian (Cerulli Associates, 2024 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (based on total revenues, Financial Planning magazine 1996-2022); and, among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors (2021-2022 Kehrer Bielan Research and Consulting Annual TPM Report). Fortune 500 as of June 2021.

(6) Gross profit is a non-GAAP financial measure. Please see a description of gross profit under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a calculation of gross profit for the periods presented (in thousands):

	Q4 2024			Q3 2024		Q4 2023
Total revenue_(a)	$	3,512,351		$	3,108,394	$	2,643,829
Advisory and commission expense		2,250,427			1,948,065		1,607,978
Brokerage, clearing and exchange expense		34,789			29,636		25,917
Employee deferred compensation		(502	)		2,617		2,881
Gross profit_(a)	$	1,227,637		$	1,128,076	$	1,007,053

Below is a calculation of gross profit for the years presented (in thousands):

	Years Ended December 31,
		2024		2023
Total revenue_(a)	$	12,385,107	$	10,052,848
Advisory and commission expense		7,751,006		5,915,807
Brokerage, clearing and exchange expense		127,941		105,984
Employee deferred compensation		4,815		4,101
Gross profit_(a)	$	4,501,345	$	4,026,956

(7) Production-based payout is a financial measure calculated as advisory and commission expense plus (less) advisor deferred compensation. The payout rate is calculated by dividing the production-based payout by total advisory and commission revenue. Below is a reconciliation of the Company's advisory and commission expense to the production-based payout and a calculation of the payout rate for the periods presented (in thousands, except payout rate):

	Q4 2024			Q3 2024			Q4 2023
Advisory and commission expense	$	2,250,427		$	1,948,065		$	1,607,978
Less: Advisor deferred compensation		(1,753	)		(37,431	)		(59,438	)
Production-based payout	$	2,248,674		$	1,910,634		$	1,548,540

Advisory and commission revenue	$	2,561,297		$	2,184,582		$	1,767,909

Payout rate		87.79	%		87.46	%		87.59	%

(8) Below is a reconciliation of client cash revenue per Management's Statements of Operations to client cash revenue, a component of asset-based revenue, on the Company's consolidated statements of income for the periods presented (in thousands):

	Q4 2024			Q3 2024			Q4 2023
Client cash on Management's Statement of Operations	$	397,001		$	372,333		$	373,979
Interest income on CCA balances segregated under federal or other regulations₍₁₀₎		(18,185	)		(18,478	)		(21,318	)
Client cash on Consolidated Statements of Income	$	378,816		$	353,855		$	352,661

(9) Consists of revenue from the Company's sponsorship programs with financial product manufacturers, omnibus processing and networking services but does not include fees from client cash programs.

(10) During the first quarter of 2024, the Company disaggregated the activity previously reported in the interest income and other, net line item into its interest income, net and other revenue components. Prior period amounts have been reclassified to conform to the current presentation. Below is a reconciliation of interest income, net per Management's Statements of Operations to interest income, net on the Company's consolidated statements of income for the periods presented (in thousands):

	Q4 2024		Q3 2024		Q4 2023
Interest income, net on Management's Statement of Operations	$	28,481	$	31,428	$	21,975
Interest income on CCA balances segregated under federal or other regulations₍₈₎		18,185		18,478		21,318
Interest income on deferred compensation		14		17		19
Interest income, net on Consolidated Statements of Income	$	46,680	$	49,923	$	43,312

(11) During the first quarter of 2024, the Company disaggregated the activity previously reported in the interest income and other, net line item into its interest income, net and other revenue components. Prior period amounts have been reclassified to conform to the current presentation. Below is a reconciliation of other revenue per Management's Statements of Operations to other revenue on the Company's consolidated statements of income for the periods presented (in thousands):

	Q4 2024			Q3 2024			Q4 2023
Other revenue on Management's Statement of Operations_(a)	$	32,705		$	3,392		$	4,636
Interest income on deferred compensation		(14	)		(17	)		(19	)
Deferred compensation		1,251			40,048			62,319
Other revenue on Consolidated Statements of Income	$	33,942		$	43,423		$	66,936

(12) Core G&A is a non-GAAP financial measure. Please see a description of core G&A under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of the Company's total expense to core G&A for the periods presented (in thousands):

	Q4 2024			Q3 2024			Q4 2023
Core G&A Reconciliation
Total expense	$	3,171,070		$	2,761,046		$	2,350,042
Advisory and commission		(2,250,427	)		(1,948,065	)		(1,607,978	)
Depreciation and amortization		(92,032	)		(78,338	)		(67,936	)
Interest expense on borrowings		(81,979	)		(67,779	)		(54,415	)
Brokerage, clearing and exchange		(34,789	)		(29,636	)		(25,917	)
Amortization of other intangibles		(42,614	)		(32,461	)		(28,618	)
Employee deferred compensation		502			(2,617	)		(2,881	)
Loss on extinguishment of debt		(3,983	)		(—	)		(—	)
Total G&A		665,748			602,150			562,297
Promotional (ongoing)₍₁₄₎₍₁₅₎		(173,191	)		(175,605	)		(138,457	)
Acquisition costs₍₁₅₎		(37,261	)		(22,243	)		(34,931	)
Employee share-based compensation		(26,067	)		(20,289	)		(15,535	)
Regulatory charges₍₁₃₎		(7,335	)		(24,879	)		(8,905	)
Core G&A	$	421,894		$	359,134		$	364,469

Below is a reconciliation of the Company's total expense to core G&A for the years presented (in thousands):

	Years Ended December 31,
		2024			2023
Core G&A Reconciliation
Total expense	$	10,992,215		$	8,608,073
Advisory and commission		(7,751,006	)		(5,915,807	)
Depreciation and amortization		(308,527	)		(246,994	)
Interest expense on borrowings		(274,181	)		(186,804	)
Amortization of other intangibles		(135,234	)		(107,211	)
Brokerage, clearing and exchange		(127,941	)		(105,984	)
Employee deferred compensation		(4,815	)		(4,101	)
Loss on extinguishment of debt		(3,983	)		—
Total G&A		2,386,528			2,041,172
Promotional (ongoing)₍₁₄₎₍₁₅₎		(628,938	)		(486,326	)
Regulatory charges₍₁₃₎		(47,278	)		(71,320	)
Employee share-based compensation		(88,957	)		(66,024	)
Acquisition costs₍₁₅₎		(105,905	)		(48,103	)
Core G&A	$	1,515,450		$	1,369,399

(13) Regulatory charges for the three months ended September 30, 2024 and year ended December 31, 2024 include charges related to a settlement with the SEC to resolve the Company's civil investigation of certain elements of the Company's Anti-Money Laundering ("AML") compliance program. The Company has recorded an $18.0 million charge for the quarter ended September 30, 2024 and reached a settlement with the staff of the SEC and paid the civil monetary penalty in January 2025. Regulatory charges for the year ended December 31, 2023 include a $40.0 million charge to reflect the amount of the penalty related to the SEC's civil investigation of the Company's compliance with records preservation requirements for business-related electronic communications that was not covered by the Company's captive insurance subsidiary. The Company reached a settlement with the staff of the SEC and paid the civil monetary penalty of $50.0 million in August 2024.

(14) Promotional (ongoing) includes $13.4 million, $13.0 million and $12.5 million for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively, of support costs related to full-time employees that are classified within Compensation and benefits expense in the consolidated statements of income and excludes costs that have been incurred as part of acquisitions that have been classified within acquisition costs. Promotional (ongoing) includes $46.6 million and $30.7 million of such support costs for the twelve months ended December 31, 2024 and 2023, respectively.

(15) Acquisition costs include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented (in thousands):

	Q4 2024		Q3 2024			Q4 2023
Acquisition costs
Fair value mark on contingent consideration₍₃₆₎	$	11,249	$	5,849		$	26,712
Compensation and benefits		15,950		8,352			2,829
Professional services		7,357		6,685			3,664
Promotional₍₁₄₎		2,235		1,964			863
Other		470		(607	)		863
Acquisition costs	$	37,261	$	22,243		$	34,931

The below table summarizes the primary components of acquisition costs for the years presented (in thousands):

	Years Ended December 31,
		2024		2023
Acquisition costs
Fair value mark on contingent consideration₍₃₆₎	$	41,721	$	26,712
Professional services		20,855		10,044
Compensation and benefits		34,980		6,069
Promotional₍₁₄₎		7,006		3,593
Other		1,343		1,685
Acquisition costs	$	105,905	$	48,103

(16) EBITDA and adjusted EBITDA are non-GAAP financial measures. Please see a description of EBITDA and adjusted EBITDA under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented (in thousands):

	Q4 2024			Q3 2024		Q4 2023
EBITDA and adjusted EBITDA Reconciliation
Net income	$	270,749		$	255,303	$	217,555
Interest expense on borrowings		81,979			67,779		54,415
Provision for income taxes		70,532			92,045		76,232
Depreciation and amortization		92,032			78,338		67,936
Amortization of other intangibles		42,614			32,461		28,618
EBITDA	$	557,906		$	525,926	$	444,756
Regulatory charges₍₁₃₎		—			18,000		—
Acquisition costs₍₁₅₎		37,261			22,243		34,931
Departure of former Chief Executive Officer_(a)		(14,367	)		—		—
Loss on extinguishment of debt		3,983			—		—
Adjusted EBITDA	$	584,783		$	566,169	$	479,687

^{(a) The departure of the Company's former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.}

The below table is a reconciliation of net income to EBITDA and adjusted EBITDA for the years presented (in thousands):

		2024			2023
EBITDA and adjusted EBITDA Reconciliation
Net income	$	1,058,616		$	1,066,250
Interest expense on borrowings		274,181			186,804
Provision for income taxes		334,276			378,525
Depreciation and amortization		308,527			246,994
Amortization of other intangibles		135,234			107,211
EBITDA	$	2,110,834		$	1,985,784
Regulatory charges₍₁₃₎		18,000			40,000
Acquisition costs₍₁₅₎		105,905			48,103
Departure of former Chief Executive Officer_(a)		(14,367	)		—
Loss on extinguishment of debt		3,983			—
Adjusted EBITDA	$	2,224,355		$	2,073,887

(17) Adjusted net income and adjusted EPS are non-GAAP financial measures. Please see a description of adjusted net income and adjusted EPS under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the periods presented (in thousands, except per share data):

	Q4 2024						Q3 2024						Q4 2023
	Amount			Per Share			Amount			Per Share			Amount			Per Share
Net income / earnings per diluted share	$	270,749		$	3.59		$	255,303		$	3.39		$	217,555		$	2.85
Regulatory charges₍₁₃₎		—			—			18,000			0.24			—			—
Amortization of other intangibles		42,614			0.57			32,461			0.43			28,618			0.38
Acquisition costs₍₁₅₎		37,261			0.49			22,243			0.29			34,931			0.46
Departure of former Chief Executive Officer_(a)		(14,367	)		(0.19	)		—			—			—			—
Loss on extinguishment of debt		3,983			0.05			—			—			—			—
Tax benefit		(19,978	)		(0.27	)		(14,650	)		(0.19	)		(13,789	)		(0.18	)
Adjusted net income / adjusted EPS	$	320,262		$	4.25		$	313,357		$	4.16		$	267,315		$	3.51
Diluted share count		75,337						75,405						76,240
Note: Totals may not foot due to rounding.

Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the years presented (in thousands, except per share data):

	Years Ended December 31,
		2024						2023
	Amount			Per Share			Amount			Per Share
Net income / earnings per diluted share	$	1,058,616		$	14.03		$	1,066,250		$	13.69
Regulatory charges₍₁₃₎		18,000			0.24			40,000			0.51
Amortization of other intangibles		135,234			1.79			107,211			1.38
Acquisition costs₍₁₅₎		105,905			1.40			48,103			0.62
Departure of former Chief Executive Officer_(a)		(14,367	)		(0.19	)		—			—
Loss on extinguishment of debt		3,983			0.05			—			—
Tax benefit		(62,089	)		(0.82	)		(37,418	)		(0.48	)
Adjusted net income / adjusted EPS	$	1,245,282		$	16.51		$	1,224,146		$	15.72
Diluted share count		75,427						77,861
Note: Totals may not foot due to rounding.

(18) Consists of total advisory and brokerage assets under custody at the Company's primary broker-dealer subsidiary, LPL Financial, as well as assets under custody of a third-party custodian related to Atria's seven introducing broker-dealer subsidiaries.

(19) Assets on the Company's corporate advisory platform are serviced by investment advisor representatives of LPL Financial. Assets on the Company's independent RIA advisory platform are serviced by investment advisor representatives of separate registered investment advisor firms rather than representatives of LPL Financial.

(20) Consists of advisory assets in LPL Financial's Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms.

(21) Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.

(22) Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage.

(23) Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets.

(24) Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.

(25) Client cash balances include CCA and exclude purchased money market funds. CCA balances include cash that clients have deposited with LPL Financial that is included in Client payables in the consolidated balance sheets. The following table presents purchased money market funds for the periods presented (in billions):

		Q4 2024			Q3 2024			Q4 2023
Purchased money market funds		$	41.0		$	38.5		$	29.5

(26) During the first quarter of 2024, the Company updated its definition of client cash account balances to exclude other client payables. Prior period disclosures have been updated to reflect this change as applicable.

(27) Calculated by dividing revenue for the period by the average balance during the period.

(28) EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under the "Non-GAAP Financial Measures" section of this release for additional information. Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter and in doing so may make further adjustments to prior quarters. Below are reconciliations of trailing twelve month net income to trailing twelve month EBITDA and Credit Agreement EBITDA for the periods presented (in thousands):

	Q4 2024		Q3 2024		Q4 2023
EBITDA and Credit Agreement EBITDA Reconciliations
Net income	$	1,058,616	$	1,005,422	$	1,066,250
Interest expense on borrowings		274,181		246,618		186,804
Provision for income taxes		334,276		339,977		378,525
Depreciation and amortization		308,527		284,431		246,994
Amortization of other intangibles		135,234		121,238		107,211
EBITDA	$	2,110,834	$	1,997,686	$	1,985,784
Credit Agreement Adjustments:
Acquisition costs and other₍₁₅₎₍₃₇₎	$	223,614	$	236,007	$	110,170
Employee share-based compensation		88,957		78,425		66,024
M&A accretion₍₃₈₎		235,048		26,265		30,268
Advisor share-based compensation		2,597		2,503		2,561
Loss on extinguishment of debt		3,983		—		—
Credit Agreement EBITDA	$	2,665,033	$	2,340,886	$	2,194,807

(29) Calculated based on the average advisor count from the current period and prior periods.

(30) Calculated based on the end of period total advisory and brokerage assets divided by end of period advisor count.

(31) Represents amortization expense on forgivable loans for transition assistance to advisors and institutions.

(32) Refers to active subscriptions related to professional services offerings (CFO Solutions, Marketing Solutions, Admin Solutions, Advisor Institute, Bookkeeping, Partial Book Sales, CFO Essentials, Digital Marketing, Payroll Services and HR Solutions) and business optimizer offerings (M&A Solutions, Digital Office, Resilience Plans and Assurance Plans), as well as planning and advice services (Paraplanning, Tax Planning, and High Net Worth Services) for which subscriptions are the number of advisors using the service.

(33) Reflects retention of total advisory and brokerage assets, calculated by deducting quarterly annualized attrition from total advisory and brokerage assets, divided by the prior quarter total advisory and brokerage assets.

(34) Capital expenditures represent cash payments for property and equipment during the period.

(35) Acquisitions, net represent cash paid for acquisitions, net of cash acquired during the period.

(36) Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the consolidated statements of income.

(37) Acquisition costs and other primarily include acquisition costs, costs incurred related to the integration of the strategic relationship with Prudential, a $26.4 million reduction related to the departure of the Company's former Chief Executive Officer and related clawback of share-based compensation awards, an $18.0 million regulatory charge recognized during the three months ended September 30, 2024 reflecting the amount of a penalty proposed by the SEC as part of its civil investigation of the Company's compliance with certain elements of the Company's AML compliance program, and a $40.0 million regulatory charge recognized during the three months ended September 30, 2023 to reflect the amount of a penalty proposed by the SEC as part of its civil investigation of the Company's compliance with records preservation requirements for business-related electronic communications stored on personal devices that have not been approved by the Company.

(38) M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of the transaction.

LPL Financial Announces Fourth Quarter and Full Year 2024 Results